Payward and Clients Buy AAVE in Secondary-Market Deal
Payward's affiliated fund and clients bought an undisclosed amount of AAVE on secondary markets, as Payward says it may buy more and is exploring work with Aave.
The ChainBrief Editors
As crypto firms expand their asset-management businesses, Payward said on Nov. 5 that an affiliated fund and its clients had acquired AAVE tokens on secondary markets. The Payward announcement identified the fund as Digital Asset Special Investments I, LP, and said the amount was undisclosed.
The purchase gives Payward and participating clients token exposure to Aave, while the undisclosed size leaves the scale of that investment unclear.
How were the AAVE tokens acquired?
Payward said the fund and its clients bought the tokens through secondary-market purchases, rather than disclosing a direct sale by Aave. The company said it may make further acquisitions. It did not state how many tokens were purchased or provide a purchase price in its announcement.
Payward described the deal as part of Payward Asset Management, which it says connects investors with digital assets, structured yield and tokenized financial instruments. Vice president Gurpreet Oberoi said in the announcement that the investment reflected client demand for exposure to onchain credit markets and DeFi. The company did not identify the clients or specify how the acquired tokens are held among the fund and its clients.
What does AAVE ownership represent?
AAVE holders have governance rights over the Aave network and its treasury, according to Payward. That gives the token a role in protocol governance, distinct from the lending and borrowing activity that Aave’s smart contracts facilitate.
Payward’s announcement also pointed to the Aave Will Win framework, under which Aave Labs has committed to direct revenue from Aave-branded products to the Aave DAO treasury, alongside network fees it already receives. The announcement said the framework had been approved earlier this year. It did not give financial terms for the token purchase or say how the acquired stake would affect governance participation.
Does the purchase include an equity stake?
The Nov. 5 announcement describes AAVE token purchases and does not announce an equity investment in Aave Group. CoinDesk reported that earlier discussions had involved a proposal for 250,000 AAVE tokens and a 15% common equity stake at a $385 million valuation; its Nov. 5 report said the new announcement made no mention of equity. Those earlier reported terms were not identified as terms of the completed token purchase.
Payward said it and Aave are exploring opportunities to collaborate on future initiatives, without specifying what those might be. Aave Labs chief executive Stani Kulechov said the work could help bring Aave to more retail and institutional users, according to the announcement. No timeline or further details for a collaboration were disclosed.
Sources
- Payward announcement — payward.com